Comment 4 for bug 62980

Thank you for your report, but this is actually the intended behaviour of the vi command. When invoking vim-tiny, the variant of vim installed by default, using the vi command, it reads /etc/vim/vimrc.tiny, which sets the compatible mode, so that vi acts like the original vi. The broken arrow keys are part of that compatibility. In reality, the bug is that in Dapper, the arrow keys aren't incorrectly mapped when running vi.

To run vim, instead of vi, use the vim command, which reads /etc/vim/vimrc.